Step into the world of finance with an exploration of Bank of India, a stalwart in India’s banking sector. Nestled in Mumbai, this public sector bank has been a financial cornerstone since its establishment in 1906. Witness to the ebbs and flows of the nation’s economic landscape, Bank of India has not just weathered storms but also thrived, evolving into a robust institution with global significance.
This article peels back the layers of mere statistics, delving into the compelling narrative that propels this institution forward. Beyond the numbers, we dissect the intricate dynamics of the market, the exceptional performance of the bank, and the broader economic currents influencing its trajectory.
As we ponder the ambitious price target of 500, this discussion transcends speculation, offering a nuanced understanding of resilience, strategy, and the ever-evolving terrain of international finance. Join us on this journey beyond the balance sheets, where the story of Bank of India unfolds in chapters of growth, adaptability, and enduring importance.
About Bank of India
Bank of India, headquartered in Mumbai, is a prominent public sector bank that has been serving the financial needs of individuals and businesses since its inception in 1906. Originally founded by a group of distinguished businessmen from Mumbai, the bank underwent nationalization in 1969, becoming government-owned.
The bank operates through various segments, including Treasury Operations, Wholesale Banking, and Retail Banking. Its Treasury Operations encompass the entire investment portfolio, dealing in government securities, money market operations, and foreign exchange activities.
As of March 2021, Bank of India boasts a total business of ₹1,037,549 crore and a widespread network with 5,108 branches and 5,551 ATMs worldwide, including 24 overseas branches.
In its illustrious history, the bank has evolved into a robust institution with a strong national presence and significant international operations. The bank’s growth trajectory has been marked by strategic expansions, including entering into an agreement with the Bombay Stock Exchange in 1921 and establishing its first overseas branch in London in 1946.
Over the years, Bank of India has demonstrated resilience and adaptability, navigating through nationalizations abroad and at home. The 1969 nationalization by the Government of India marked a significant turning point. The bank’s international footprint expanded, with branches in locations such as Tokyo, Singapore, Kenya, Uganda, and more.
In recent years, Bank of India has continued its global outreach, with representative offices in Shenzhen and Vietnam, and acquisitions like the majority stake in Indonesia-based PT Bank Swadesi in 2007. The bank has also diversified its services with subsidiaries in New Zealand, Uganda, and Botswana.
Bank of India’s commitment to growth, prudent banking practices, and international presence positions it as a key player in the dynamic financial landscape. The bank’s legacy of service and adaptability underscores its importance in India’s banking sector.
Recent News Around Bank of India
- Stock is trading at an attractive valuation of 0.88 times its book value.
- Anticipation of a strong upcoming quarter for the company.
- Noteworthy profit growth with a 21.2% Compound Annual Growth Rate (CAGR) over the last 5 years.
- Ratings from various agencies such as CRISIL, ICRA, and India Ratings are positive but indicate a lower credit rating from Fitch.
- The company exhibits a low interest coverage ratio, raising concerns about its ability to meet interest obligations.
- Poor sales growth of only 4.58% over the past five years.
- A relatively low return on equity (ROE) standing at 5.61% over the last 3 years.
- Significant contingent liabilities amounting to Rs. 4,08,307 Crores.
- There are indications that the company might be capitalizing interest costs.
Bank of India Q2 Fy2024 Key Points And Summary:
Bank of India’s Q2 FY2024 performance showcases resilience and growth across various financial indicators.
- The bank witnessed a substantial increase in Net Interest Income, with a notable rise from Rs. 24.66 Bn in Mar ’22 to Rs. 37.56 Bn in Sep ’23. This reflects a commendable improvement in overall profitability.
- The Cost to Income Ratio demonstrated a declining trend, reaching 49.44% in Sep ’23, emphasizing the bank’s commitment to operational efficiency and cost management.
- Bank of India maintained a stable Net Interest Margin around 3.05%, showcasing effective management of interest-bearing assets and liabilities.
- With Domestic Advances at Rs. 5,431 Bn and Global Deposits at Rs. 12,468.79 Bn in Sep ’23, the bank exhibited a growing asset book and deposit base.
- The bank showed consistent efforts in reducing Non-Performing Assets (NPAs), with Gross NPAs at Rs. 317.2 Bn and Net NPAs at Rs. 79.8 Bn in Sep ’23.
- Bank of India maintained a robust provision coverage of 91% (As on Sept ’23), reflecting prudent financial practices and risk management.
- Boasting a RoA of 0.68%, RoE of 13.72%, and a Credit to Deposit Ratio of 77.18%, Bank of India signifies efficient resource utilization and sustained financial strength.
Shareholding Pattern Bank of India
| Sep 2022 | Dec 2022 | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | |
| Promoters + | 81.41% | 81.41% | 81.41% | 81.41% | 81.41% | 73.38% |
| FIIs + | 1.12% | 2.23% | 2.67% | 2.25% | 2.92% | 6.19% |
| DIIs + | 10.84% | 10.56% | 10.36% | 9.90% | 9.55% | 14.41% |
| Public + | 6.64% | 5.80% | 5.57% | 6.44% | 6.11% | 6.01% |
| No. of Shareholders | 4,98,740 | 4,71,483 | 4,77,568 | 4,97,910 | 5,16,202 | 5,26,675 |
Let’s analyze Bank of India’s shareholding pattern over recent quarters:
Promoters:
Promoters consistently maintained a dominant position, holding 81.41% of shares until December 2023. However, there was a slight decrease to 73.38% by December 2023, which could be attributed to various factors, including strategic decisions or regulatory changes.
Foreign Institutional Investors (FIIs):
FIIs gradually increased their stake from 1.12% in September 2022 to 6.19% in December 2023. This surge might indicate growing confidence among international investors in Bank of India’s potential and performance.
Domestic Institutional Investors (DIIs):
DIIs demonstrated a relatively stable holding pattern, fluctuating marginally from 10.84% to 14.41%. Consistent DII interest suggests confidence in the bank’s stability and long-term prospects.
Public Shareholders:
Public shareholding, including retail and institutional investors, remained relatively steady around 6% throughout the observed period. This indicates a consistent level of interest and participation from the public.
Number of Shareholders:
The number of shareholders increased steadily from 4,98,740 in September 2022 to 5,26,675 by December 2023. A rising number of shareholders may suggest increased retail participation and interest in Bank of India’s stock.
Conclusion:
Bank of India’s shareholding pattern reflects a mix of stability and evolving dynamics. While promoters maintain a significant stake, the increased participation of FIIs and a growing shareholder base indicate positive sentiment and potential growth prospects. Investors should monitor any significant changes in the shareholding pattern as it could signify shifts in the market perception or strategic moves by key stakeholders.
Note: Shareholding patterns are subject to change, and investors are advised to verify the latest data for accurate decision-making.
Bank of India Share Price Target 2024 To 2030
Bank of India Share Price Target 2024
| When | Maximum Price | Minimum Price |
| January 2024 | ₹141.15 | ₹122.74 |
| February 2024 | ₹144.03 | ₹125.25 |
| March 2024 | ₹146.97 | ₹127.80 |
| April 2024 | ₹142.69 | ₹124.08 |
| May 2024 | ₹140.58 | ₹122.25 |
| June 2024 | ₹145.64 | ₹126.65 |
| July 2024 | ₹144.19 | ₹125.38 |
| August 2024 | ₹149.95 | ₹130.40 |
| September 2024 | ₹155.95 | ₹135.61 |
| October 2024 | ₹152.90 | ₹132.95 |
| November 2024 | ₹157.48 | ₹136.94 |
| December 2024 | ₹161.42 | ₹140.36 |
In 2024, Bank of India’s stock is anticipated to exhibit varying price ranges. The expected maximum price for January is ₹141.15, while the minimum is ₹122.74. Throughout the year, the stock is projected to experience fluctuations with the highest expected in December at ₹161.42 and the lowest in May at ₹122.25.
These projections are based on careful analysis considering market trends, economic indicators, and the bank’s financial performance. Factors influencing this forecast include macroeconomic conditions, interest rates, and the bank’s strategic initiatives. Investors should note that these estimates are subject to market dynamics and unforeseen events. The expected prices will only materialize under the current assumptions, and prudent investors should continuously monitor market developments for informed decision-making.
Bank of India Share Price Target 2025
| when | Maximum Price | Minimum Price |
| January 2025 | ₹164.65 | ₹126.65 |
| February 2025 | ₹168.87 | ₹129.90 |
| March 2025 | ₹175.45 | ₹134.97 |
| April 2025 | ₹172.01 | ₹132.32 |
| May 2025 | ₹167.00 | ₹128.47 |
| June 2025 | ₹174.52 | ₹134.25 |
| July 2025 | ₹171.10 | ₹131.61 |
| August 2025 | ₹176.39 | ₹135.68 |
| September 2025 | ₹182.56 | ₹140.43 |
| October 2025 | ₹187.31 | ₹144.08 |
| November 2025 | ₹191.99 | ₹147.69 |
| December 2025 | ₹196.79 | ₹151.38 |
Throughout 2025, Bank of India’s share price is expected to experience fluctuations, presenting investors with a range of opportunities and challenges. In January, the share price is anticipated to fluctuate between ₹126.65 and ₹164.65, reflecting potential market volatility. As the year progresses, February may see prices varying from ₹129.90 to ₹168.87, indicating the need for investors to stay vigilant.
March is projected to bring further dynamics, with prices estimated between ₹134.97 and ₹175.45. Investors should be prepared for potential shifts in market sentiment. The trend continues in April, with prices ranging from ₹132.32 to ₹172.01, suggesting ongoing market movements.
May, June, and July showcase potential variations with price ranges of ₹128.47-₹167.00, ₹134.25-₹174.52, and ₹131.61-₹171.10, respectively. Investors need to adapt to changing market conditions during these months.
August through December follows a similar pattern, with fluctuating prices reflecting the complexities of the market. In September, prices are expected to range between ₹135.68 and ₹176.39, while October may see variations from ₹140.43 to ₹182.56. November and December close the year with price ranges of ₹147.69-₹191.99 and ₹151.38-₹196.79, respectively.
This analysis underscores the importance of a flexible investment strategy, considering the potential market dynamics throughout 2025. Investors should stay informed, monitor economic indicators, and adjust their approach to capitalize on emerging opportunities.
Bank of India Share Price Target 2026 To 2030
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹206.63 | ₹144.64 |
| 2027 | ₹227.30 | ₹159.11 |
| 2028 | ₹318.21 | ₹159.11 |
| 2029 | ₹275.51 | ₹137.75 |
| 2030 | ₹358.16 | ₹250.71 |
In the coming years, Bank of India’s share price is expected to undergo dynamic shifts, offering investors both opportunities and challenges. In 2026, the share price is anticipated to fluctuate between ₹144.64 and ₹206.63, reflecting potential market volatility and the need for strategic investment decisions.
As we progress to 2027, the price range is expected to widen, presenting investors with opportunities within the ₹159.11 to ₹227.30 bracket. The year 2028 introduces even greater variability, with prices ranging from ₹159.11 to ₹318.21. This signifies a critical phase for investors, emphasizing the importance of adapting to evolving market conditions.
Heading into 2029, the price range is projected to be ₹137.75 to ₹275.51, indicating potential shifts in market dynamics. Finally, 2030 is anticipated to bring a broader range of opportunities, with prices fluctuating between ₹250.71 and ₹358.16.
This analysis underscores the importance of a strategic and adaptive investment approach, considering the expected price ranges throughout 2026 to 2030. Investors should stay attuned to market trends, economic indicators, and global factors to make informed decisions and navigate the evolving landscape of Bank of India’s stock.
Bank of India’s Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM | |
| Revenue | 41,005 | 42,591 | 40,854 | 38,281 | 47,932 | 55,848 |
| Interest | 27,207 | 27,191 | 26,421 | 24,083 | 27,441 | 32,815 |
| Expenses + | 26,874 | 26,386 | 17,672 | 16,263 | 21,177 | 21,007 |
| Financing Profit | -13,076 | -10,987 | -3,239 | -2,065 | -686 | 2,026 |
| Financing Margin % | -32% | -26% | -8% | -5% | -1% | 4% |
| Other Income + | 4,862 | 6,687 | 6,778 | 8,092 | 7,168 | 7,792 |
| Depreciation | 373 | 392 | 380 | 372 | 427 | 0 |
| Profit before tax | -8,587 | -4,692 | 3,160 | 5,655 | 6,056 | 9,818 |
| Tax % | 37% | 35% | 34% | 38% | 37% | |
| Net Profit + | -5,426 | -3,051 | 2,081 | 3,487 | 3,839 | 5,389 |
| EPS in Rs | -19.67 | -9.31 | 6.36 | 8.51 | 9.35 | 13.13 |
| Dividend Payout % | 0% | 0% | 0% | 24% | 21% |
Bank of India has navigated through a transformative financial journey over the past five years, reflecting a nuanced interplay of revenue dynamics, interest management, and operational efficiency. The financial snapshot from March 2019 to the trailing twelve months (TTM) reveals significant shifts in key metrics.
The revenue trajectory has seen fluctuations, reaching its zenith at ₹55,848 crore in the TTM, marking a notable increase from the March 2019 figure of ₹41,005 crore. However, the Financing Margin percentage presents a varied narrative, plunging from -32% in March 2019 to -1% in the TTM, underscoring challenges in the financing sector.
Interest management has been a critical focus, with a steady decline from ₹27,207 crore in March 2019 to ₹32,815 crore in the TTM. Conversely, operating expenses have shown a mixed trend, experiencing a dip from ₹26,874 crore in March 2019 to ₹16,263 crore in March 2022, only to rise again in the TTM to ₹21,007 crore.
The Financing Profit, a key indicator of operational success, exhibited a noteworthy turnaround, shifting from a deficit of -₹13,076 crore in March 2019 to a positive ₹2,026 crore in the TTM. This shift is mirrored in the Financing Margin percentage, emphasizing the bank’s resilience and adaptability.
Other Income displayed consistent growth, increasing from ₹4,862 crore in March 2019 to ₹7,792 crore in the TTM. However, the depreciation trend remained relatively stable, with a marginal decrease from ₹373 crore in March 2019 to zero in the TTM.
The Profit Before Tax (PBT) trajectory reveals a significant upswing, escalating from -₹8,587 crore in March 2019 to ₹9,818 crore in the TTM. The Net Profit, a crucial metric, reflects a similar positive trajectory, climbing from -₹5,426 crore in March 2019 to ₹5,389 crore in the TTM.
The Earnings Per Share (EPS) witnessed a notable improvement, escalating from -₹19.67 in March 2019 to ₹13.13 in the TTM. The dividend payout percentage increased gradually, from 0% in March 2019 to 21% in the TTM, signaling enhanced shareholder value.
In conclusion, Bank of India’s financial narrative depicts a journey of resilience and adaptability, marked by strategic shifts in revenue streams, interest dynamics, and operational efficiencies. The positive trajectory in key metrics positions the bank favorably for future growth and stability.
FAQS
1. What is Bank of India’s current stock price?
- As of latest data available, the closing stock price for Bank of India is ₹129.
2. How has the stock performed recently?
- The stock has a 52-week trading range of ₹66.0 to ₹130.
3. What is the Capital Adequacy Ratio of Bank of India?
- Bank of India maintains a Capital Adequacy Ratio of 17.05%, indicating a strong financial position.
4. What is the significance of Net Interest Margin (NIM)?
- Bank of India’s Net Interest Margin stands at 2.58%, reflecting the profitability of its core lending activities.
5. What is the Gross NPA and Net NPA of Bank of India?
- Bank of India reports Gross NPA at 13.25% and Net NPA at 1.66%, showcasing its asset quality.
6. What is the CASA Ratio of Bank of India?
- The CASA Ratio, an indicator of low-cost deposits, is reported at 40.61% for Bank of India.
7. What is the market capitalization of Bank of India?
- Bank of India’s market capitalization is ₹58,775 Crores.
8. Does Bank of India pay dividends?
- Yes, Bank of India pays dividends with a current yield of 1.55%.
9. What is the Return on Capital Employed (ROCE) for Bank of India?
- Bank of India’s ROCE is 4.42%, reflecting its efficiency in utilizing capital for generating profits.
10. What is the Face Value of Bank of India’s stock?
- The Face Value of Bank of India’s stock is ₹10.0.
Should one invest in Bank of India?
Bank of India, a prominent player in the banking sector, has seen its stock trading at ₹129 with a dividend yield of 1.55% as of January 12. The bank’s financial health is reflected in key ratios, with a Capital Adequacy Ratio of 17.05%, Net Interest Margin at 2.58%, and Gross NPA at 13.25%. The CASA Ratio stands at 40.61%, emphasizing the bank’s focus on low-cost deposits.
In terms of market performance, Bank of India commands a market cap of ₹58,775 Cr. The stock exhibits a Price to Earnings ratio of 10.9, indicating favorable valuation. The company’s stock has a 52-week range of ₹66.0 to ₹130.
Analyzing the pros and cons, the stock is trading below its book value, anticipating positive quarterly results, and has delivered a commendable profit growth of 21.2% CAGR over the last 5 years. However, concerns arise from a low interest coverage ratio, modest sales growth of 4.58% over the past five years, and a relatively lower return on equity of 5.61% over the last 3 years. Additionally, contingent liabilities of ₹4,08,307 Cr. and potential interest cost capitalization are flagged as cons.
Comparing Bank of India with its peers in the public sector banking space, the stock’s performance is competitive. The median values for various parameters among peers showcase Bank of India’s position within the industry.
Examining the quarterly results, the revenue trajectory has shown growth from ₹10,852 Cr. in Sep 2020 to ₹15,062 Cr. in Sep 2023. The Financing Margin percentage has improved from -5% to 8% during the same period. Net Profit has grown substantially, reaching ₹5,389 Cr. in Sep 2023, with an Earnings Per Share (EPS) of ₹13.13.
Looking at the last five years, Bank of India has displayed resilience, with a compounded sales growth of 5% and a compounded profit growth of 21%. The stock price has shown a promising compound annual growth rate (CAGR) of 4%, signaling positive investor sentiment.
In conclusion, Bank of India’s current stock performance, financial ratios, and quarterly results suggest a mixed outlook. While certain financial indicators are strong, concerns about sales growth and return on equity call for vigilant monitoring. The bank’s future trajectory will likely be influenced by its ability to navigate industry challenges and capitalize on growth opportunities.
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